Bankruptcy Prediction Model Development and its Implications on Financial Performance in Slovakia

Abstract

Research purpose. Financial distress being a global phenomenon makes it impact firms in all sectors of the economy and predicting corporate bankruptcy has become a crucial issue in economics. At the beginning of the last century, the first studies aimed to predict corporate bankruptcy were published. In Slovakia, however, several prediction models were developed with a significant delay. The main aim of this paper is to develop a model for predicting bankruptcy based on the financial information of 3,783 Slovak enterprises operating in the manufacturing and construction sectors in 2020 and 2021.

Keywords

• bankruptcy
• prediction model
• multiple discriminant analysis
• manufacturing and construction sector
• slovakia
• g17
• g33